Financial Institutions To Use Bank Of Russia’s Regulatory Sandbox For ICO Pilotbr>
Launched in April 2018, the Bank of Russia’s regulatory sandbox offers FinTech companies the chance to test new financial services and technologies without the risk of violating domestic law. The central bank and other governmental organizations, profile associations, and development institutions assess services and technologies implemented at the platform.
Under the ICO pilot project, Level One, a company that manages Moscow’s biggest commercial lecture hall, will launch a token sale. Sberbank CIB, the bank’s corporate and investment banking business, will act as the issuance coordinator and anchor investor in tokens issued by Level One. NSD will be the transaction’s custodian and will keep and register the digital assets.
The participants said they are using the regulatory sandbox to get feedback from the Bank of Russia related to improving mechanisms to conduct transactions. The platform will also allow Sberbank CIB and NSD to assess the specifics of these transactions and mitigate associated risks.
Eddie Astanin, Chairman of the Executive Board at NSD, said their end goal is to create the fundamental basis for the development of the digital economy in the country, for the emergence of a new type of asset for investors, for ICO ecosystems, and for the circulation of digital assets on the secondary market.
“In conjunction with market leaders, we are implementing a project to create infrastructure to record digital assets,” Astanin said. “The existence of this infrastructure is a crucial condition based on which institutional investors come to our market, the market develops rapidly, and its capitalization grows.”
Igor Bulantsev, Senior Vice President of Sberbank and Head of Sberbank CIB, said that they consider the Russian ICO market to be very promising.
“Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect, we will be one of the drivers to institutionalize and popularize this type of transaction,” said Bulantsev.
The announcement came after the Russian parliament approved the first reading of new laws regulating the crypto industry. The bill, “On Digital Financial Assets,” deals with cryptocurrencies, as well as blockchain-related technologies such as smart contracts, mining, and ICOs.